S&P lowers Home Interiors

Standard & Poor's said it lowered its ratings on Home Interiors & Gifts Inc., including its corporate credit rating to CCC from CCC+, its senior secured rating to CCC from CCC+ and its subordinated rating to CC from CCC-.

At the same time, the agency said it affirmed its 3 recovery rating on the company's senior secured bank loan.

The outlook is negative.

S&P said the downgrade reflects weaker-than-expected operating performance for the second quarter of fiscal 2005 ended June 30 and the disclosure in the company's recent 10-Q filing that it may breach debt covenants on its senior bank loan for the quarter ending Sept. 30, despite the company's recent bank loan waiver and amendment, which provided relief from financial covenants only through the second quarter of fiscal 2005.

The ratings on Home Interiors are based on continued poor performance and limited financial resources, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.